WW Grainger Inc (GWW)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,168,000 | 16,478,000 | 15,228,000 | 13,022,000 | 11,797,000 |
| Property, plant and equipment | US$ in thousands | — | — | 1,828,000 | 1,817,000 | 1,395,000 |
| Fixed asset turnover | — | — | 8.33 | 7.17 | 8.46 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,168,000K ÷ $—K
= —
The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. WW Grainger Inc's fixed asset turnover has shown some fluctuations over the years. It stood at 8.46 on December 31, 2020, indicating that the company generated $8.46 in sales for every dollar invested in fixed assets.
By December 31, 2021, this ratio decreased to 7.17, suggesting a dip in the efficiency of utilizing fixed assets to generate sales revenue. However, in the following year, it improved to 8.33, indicating a better utilization of fixed assets to drive sales.
Unfortunately, the data for December 31, 2023, and December 31, 2024, are unavailable (denoted by "—"), making it difficult to assess the trend in fixed asset turnover during those years.
Overall, the company's fixed asset turnover has shown some variability, but it is essential for WW Grainger Inc to continuously monitor and manage its fixed asset efficiency to ensure optimal utilization of its resources.